Buying New Home Construction: Common Problems to Avoid

Share on facebook
Share on google
Share on twitter
Share on linkedin

Owning a house is a big commitment, but it is not a guaranteed good investment. Putting in time and effort to get that perfect house is a truckload of work, but the aim is to end up with a home that you love at a price that you can afford.

A survey done by Trulia shows that 41% of Americans prefer to buy a newly built home than a previously lived-in house. Why are newly constructed houses more appealing to homebuyers? The top reasons are: (1) 59% want to have the modern features in their houses, (2) 56% would want to be able to customize and select their own furniture and fixtures to tailor the interior to their taste, and (3) 55% know that repair and maintenance costs would be minimal.

Do not get caught up in the excitement of a new house. Aside from choosing the right mortgage company in Tempe, it is equally important to check on some other factors and avoid the common pitfalls with buying newly constructed houses.

Skipping Home Inspections

A home inspection is always important regardless if you’re buying a newly built house or not. It is best to hire a qualified and experienced individual to perform the inspection. Many new houses can also contain defects as construction workers can make mistakes, and dodgy developers can skip over the quality of certain phases of the construction to cut on costs.

A professional home inspector will be able to ensure that the structure is solid, the wiring is up to code, and the plumbing and electrical systems are working. They can check things that are not normally discovered during a home tour.

Failing to Check the Builder’s or Developer’s Reputation

couple with realtor in the model house

Do not get hypnotized by the picture-perfect model homes with an open-floor plan. Oftentimes, developers employ all kinds of techniques to make these model houses appear bigger than they actually are.

According to the U.S. Census Bureau and the Department of Housing and Urban Development, around 67% of new-home sales are signed before construction is completed as many homebuyers would prefer to customize their own homes. If you are thinking of doing the same, make sure to check your developer’s credibility and professionalism prior to any negotiation. What we do not want is to end up in a low-quality construction deal after spending hundreds of thousands.

Get to know the developers in the area where you want to buy and do your research, online and offline. Make sure to check and actually visit the developer’s previous projects and scrutinize the quality of these sites. Do not rely on their promotional materials. Also, do your online research through forums and see what people are saying about the developers.

Failing to Consider Premium Pricing

Premium pricing is a strategy used by many developers. It is the practice of setting a higher price than that of the market price, with the goal of creating a perception of higher quality and expecting that customers will purchase it due to that perception. Shop around for good deals and analyze comparable sales and property conditions along the way. After understanding the different comparisons and objectively determining what the market value spectrum should be, see how this matches up to the pricing the developers have set. Then start negotiating.

Newly constructed houses are a great option, especially when you are looking at the right sizing in the future. Make sure to learn from these common mistakes to protect yourself and make the entire home-buying process a pleasant experience.